Electronics distributor WE Holdings has proposed a renounceable underwritten rights-cum-warrants issue to raise proceeds of between $12.7 million and $39.41 million.

This will help fund its acquisition of a stake in Myanmar cement manufactor Dragon Cement, expand its coal business and be used for the company's working capital.

WE Holdings said on Tuesday that it will issue up to 1.31 billion rights shares at 1.5 cents each.

It will also issue up to 1.31 billion free detachable warrants. Each warrant allows shareholders to subscribe for one new ordinary share at an exercise price of 3 cents each.

The company said in a statement: "The proposed rights-cum-warrants issue is in line with our plan to tap on the growth opportunities in the petroleum, oil and gas related resources sector in Myanmar."

In the event that WE Holdings is unable to raise sufficient funds for the Dragon Cement acquisition, it will look into other funding options including bank borrowings.